Suppose That a Competitive Firm Hires Labor Up to the Point

question 214

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm.If the firm pays a wage of $700 per week and the marginal product of labor equals 100 units per week,then the marginal cost of producing an additional unit of output is

• A) $7.
• B) $70.
• C) $700.
• D) We do not have enough information to answer this question.

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Definitions:

Fresh Water

Water that has low concentrations of dissolved salts (salinity) and other total dissolved solids, commonly found in rivers, lakes, streams, and underground aquifers.

Inverted Ecological Pyramids

describe situations in ecosystems where higher trophic levels have greater biomass or numbers than lower levels, contrary to the typical pyramid shape.

Aquatic Ecosystems

Environments in water where organisms interact with each other and with their surrounding physical environment, including oceans, lakes, and rivers.

Nitrification

A microbial process by which ammonia is oxidized to nitrites and then nitrates, a crucial part of the nitrogen cycle in soils.